Essential Utilities Inc (WTRG)
Return on total capital
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 715,143 | 689,024 | 629,709 | 453,406 | 336,909 |
Long-term debt | US$ in thousands | 6,826,080 | 6,371,060 | 5,779,500 | 5,507,740 | 2,943,330 |
Total stockholders’ equity | US$ in thousands | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 | 3,880,860 |
Return on total capital | 5.62% | 5.86% | 5.74% | 4.45% | 4.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $715,143K ÷ ($6,826,080K + $5,896,180K)
= 5.62%
Essential Utilities Inc's return on total capital has demonstrated a consistent performance over the past five years, ranging from 4.15% in 2020 to 5.42% in 2022. The company's return on total capital for the most recent year, as of Dec 31, 2023, stands at 5.34%. This indicates that Essential Utilities has been able to generate a positive return relative to the total capital invested in the business. While the fluctuations in the ratio over the years are relatively minor, the overall trend suggests that Essential Utilities has been effectively utilizing its total capital to generate profits for its shareholders.
Peer comparison
Dec 31, 2023